Chairman of Russia’s Accounts Chamber Alexei Kudrin has explained how Russia can become one of the five largest economies in the world and achieve high GDP growth rates. This depends on three factors – workforce, investment and labor productivity, he said quoted by TASS.
At present, Russia ranks the 11th largest economy in the world and the country’s GDP growth is lower than in the United States – although in developed countries, the economy tends to grow more slowly than in emerging markets. At present, Russia’s GDP is increasing at 1.5% per year – and even doubling this growth rate is problematic.
“It’s difficult to achieve a 3% growth per year; it’s an extra difficult task. Even a series of national projects cannot do this,” Kudrin admitted speaking at the Gaidar Forum. “National projects are not enough to reach the economic growth rates that would take our economy up to number five. We need additional policies that will promote growth.”
In his opinion, labor resources are going to shrink with the decrease in the flow of migrants: fewer people want to work in Russia due to the depreciation of the ruble.
Therefore, we need to work on the two remaining factors: investment and growth in productivity. Kudrin also recognized the importance of political factors.
“Achievements depend on the policy in general, on its consistency. The integrity of state policy and the building of trust are not always reflected in measurements. We can now see from opinion polls that trust is not too high,” the former finance minister stressed.